What Are the Two Most Commonly Used Approaches for Segmenting

question 17

Multiple Choice

What are the two most commonly used approaches for segmenting markets?

• A) Benefit segmentation and psychographic segmentation.
• B) Advertising segmentation and financial segmentation.
• C) Nonprofit segmentation and profit segmentation.
• D) Marketing segmentation and geodemographic segmentation.

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Definitions:

Elastic Demands

Describes demand that is highly responsive to changes in price, with significant changes in the quantity demanded.

Consumer Surplus

The gap between the total sum consumers are ready and capable of paying for a good or service versus what they really spend.

Industry Profits

The total earnings of companies within a specific sector after all expenses are subtracted from revenue.

Perfectly Price Discriminate

A pricing strategy where a seller charges each buyer the maximum price they are willing to pay, resulting in the seller capturing all consumer surplus.